London, July 19, 2011

Providence raises USD 60 million via oil prepaid swap with Deutsche Bank


Providence Resources, Inc (AIM: PVR) today announced that it has entered into a prepaid oil swap transaction with Deutsche Bank A.G. to the value of USD 60 million.

The six and a half year debt facility is secured by way of a first lien over the company's interest in the Singleton oil field in West Sussex, UK. Providence intends to use the funds to repay its existing reserve base lending facility and to facilitate the ongoing development plan for the Singleton property, where the company plans to materially increase production rates.

Providence Chief Executive Officer Tony O’Reilly said: “We are extremely pleased to have entered into this new facility with Deutsche Bank. This innovative facility allows us to avail of today’s higher pricing environment for the term of the facility. Importantly, it provides the operational and financial flexibility that will allow us to focus on increasing Singleton production rates.”

Deutsche Bank’s global head of oil sales and origination Brian Cumming said: “Our platform prides itself on its ability to offer unique financing solutions for clients. We were delighted to structure a prepaid swap with Providence that not only allows them to capture very attractive commodity prices but also allows them to better match the term of the debt to the increasing life of the Singleton oil field.”

The Deutsche Bank Global Commodity Group's depth of product expertise across financial and physical commodity markets has allowed it to build a track record of delivering innovative commodity linked structured solutions to its clients. The accomplishments of the group have been recognised by numerous industry awards over the years, more recently by IFR which named Deutsche Bank its Commodity House of the Year for 2010.


For further information, please call:

Deutsche Bank AG                                 
Stacey Coglan                                
Phone: +44 (0) 207 545 8226        
E-Mail: stacey.coglan@db.com

Providence Resources Plc 
Tony O‘Reilly
Phone: +353 (0) 1 219 4074
Email: toreilly@providenceresources.com




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www.db.com


About Providence

Providence Resources Plc is an independent oil and gas exploration company listed on the AIM market in London and on Dublin‟s ESM market. Providence‟s active oil and gas portfolio includes interests in Ireland (offshore), the United Kingdom (onshore and offshore) and West Africa (offshore Nigeria). Providence‟s portfolio is balanced between production, appraisal and exploration assets, as well as being diversified geographically.

www.providenceresources.com


About Singleton

The Singleton oil field is located 7 km north of Chichester in onshore licence PL 240 in the Weald Basin, South of England. The field consists of two east west trending elongate horst blocks divided by a narrow graben. The wells produce from the Jurassic-aged Great Oolite formation, consisting predominantly of oolitic grainstones deposited during transgressive/regressive episodes. Recent studies (2008) suggested an original oil in-place resource of up to c.107 MMBO. Since production commenced in 1989, the field has produced c. 3.7 MMBO, which represents a recovery factor to date of c. 3.5%. Published data from similar fields in the area suggest an ultimate recovery factor of up to c.10% should be achievable. Current normalised field production is c. 850 BOEPD with the produced oil (37o API gravity crude) being trucked to the Holybourne rail terminal.


About oil prepaid swap transaction

This oil prepaid swap transaction involves the producer of oil, in this case Providence, agreeing to sell forward a certain percent of its production over the term of the transaction to the bank, in this case Deutsche Bank. The price for the forward sales was agreed by both parties at the closing of the transaction which mirrored the commodity price forward curve for Brent. Deutsche Bank advance the agreed amount to Providence as a prepayment for oil that will be produced and delivered by Providence to Deutsche Bank to repay the prepayment or the loan over the agreed period to December 2017.



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